Hyderabad Metro Updates

[Kewl Batty]

No word from Maytas on financial closure

Source

HYDERABAD: A final decision on the future of the agreement with the Maytas Infra - led consortium for implementing the Metro Rail project is likely to be taken by the State government in the next few days.

Till the end of office hours on Tuesday, the consortium did not communicate to the government about the progress it had made in achieving financial closure. Maytas Infra was scheduled to finalise its tie-ups for resources by March 17 but could not do so even after an extension for three months allowed by the government.

The Chief Minister indicated at a media conference in New Delhi on June 20 that the government would take a decision in 10 days about the future of the mega transportation project after awaiting a response from the consortium.

According to official sources, the government is now left with two options – allotting the projects to the next highest bidder or seek Centre’s support for making a joint venture between the Union and the State government.

Union Minister for Urban Development S. Jaipal Reddy expressed the Centre’s willingness to provide viability gap funding to the extent of 20 per cent in addition to 20 per cent grant.

[Babji]

http://epaper.sakshi.com/Details.asp...boxid=30127876

... A singapore based firm, "Concept to Commissioning Consultant" (?) came forward to help Myatas in Hyd Metro project...
Maytas is working out details on how much funding and on what conditions, with the Singapore firm ...
Maytas has submitted a letter to GoAP to this extent ...
GoAP has given time till July 6th fot Maytas to come up with details ...
If Maytas fails to come up with details by July 6th, Maytas contract will be terminated ...

[isujay]

Source : Deccan

Hyderabad
June 30: The state government has decided to give some more time to the beleaguered Maytas Infra to achieve financial closure for the Hyderabad Metro Rail project. On the last day to achieve financial closure, Maytas Infra management submitted a letter to the Chief Minister, Dr Y.S. Rajasekhar Reddy, telling him that it was talking to several financial institutions to finalise the closure and needs more time.

Though the Chief Minister has not formally responded, it is learnt that government has decided to give some more time to the company, a twin of the scam-tainted Satyam.

[HMDA]

GOOD NEWS .....

Originally Posted by isujay

Source : Deccan

[skdubai]

interesting new twist....

http://economictimes.indiatimes.com/...ow/4724332.cms

Maytas proposes Reliance Infra as partner for Metro project


HYDERABAD: Maytas Infrastructure, majority- owned by the family of scam-hit IT firm Satyam's disgraced founder B Ramalinga Raju, is believed to

have proposed bringing in Reliance Infra as a partner in the prestigious Rs 12,200-crore metro rail project here.

While Reliance Infra's position on willingness to join the consortium could not be ascertained immediately, sources said that some of the Maytas officials had approached Anil Ambani group firm last week on the issue.

Late last night, Maytas Infra Chairman K Ramalingam met Andhra Pradesh Chief Minister Y S R Reddy and proposed a re-grouping of the consortium for the Hyderabad metro project, sources added.

In the proposed structure, Reliance Infra could be given as high as 84 per cent stake, while Maytas' holding could fall to as low as 16 per cent, sources said.

While a spokesperson declined to comment on the development, Reliance Infra chief Lalit Jalan had previously said that the company would consider bidding for the project, if the government calls for fresh bids.

Maytas Infra spokesperson could not be reached for comments.

govt. puts some fire under their asses and suddenly they have investors from all over willing to help out!!!

[Civilian26189]

Looks like Maytas wants the project at any cost, even if their holding stake is only 16%

[qwertyasd]

Originally Posted by skdubai

interesting new twist....

http://economictimes.indiatimes.com/...ow/4724332.cms

govt. puts some fire under their asses and suddenly they have investors from all over willing to help out!!!

what bull shit - 84+16 = 100. What happened to NavBharat and ILFS (i hope i am right)? Are they going to be bought out too?

[IndiansUnite]

maybe. I'm guessing this 16% figure includes all members of the present consortium since none of the small stake holders are willing to bid au revoir to the project. You're right about the other 2 consortium members. There's another one - Ital Thai which holds 5% stake.

[rajeev_14012008]

Originally Posted by skdubai

interesting new twist....

http://economictimes.indiatimes.com/...ow/4724332.cms



govt. puts some fire under their asses and suddenly they have investors from all over willing to help out!!!

This directly defeats the drama of tenders , technical tenders, xyz........ Whats the fun in doing all ......

[skdubai]

lol... true... but if they can manage to salvage the project.. i dun mind!!!!

[Arasu]

How come a company that is tainted by one of the major scams in the country and that has not fulfilled its promise of financial closure well after the deadline, still allowed to dictate terms and allowed to alter the contract?

What do you expect this company to do when it is half way into the project?
Why would it not propose other changes to wriggle out of terms of the contract? This is the way many corrupt companies do business in India by influencing the politicians and negatioting favourable terms time and again to the detriment of the public interests and exchequer. Maytas has started doing this from scratch.

Unfortunately for me, the proposal by Maytas is disingenuous from the start and the happenings later on have created more doubts on its capacity.

It may not be a bad idea to have a fresh start with genuine promoters that have the financial wherewithal and project management capabilities to carry this projects through.

[Kewl Batty]

Simple.. Corruption

[Vara123]

YSR, Wakeup and see the traffic problems in Hyderabad. Give the Metro Project to the next highest bidder. r.

[Babji]

http://www.telegraphindia.com/109070..._11186069.jsp#

Anil plan to bail out Hyderabad metro
G.S. RADHAKRISHNA

Hyderabad, July 1: Anil Ambani has emerged as a likely saviour of the Hyderabad metro rail project, which got derailed by the Satyam scam.

Ambani’s Reliance Infrastructure may pick up an 84 per cent stake in Hyderabad Metro Rail Corporation, with Maytas Infra holding the rest.

Maytas chairman K. Ramalingam met Andhra Pradesh chief minister Y.S. Rajasekhar Reddy yesterday and submitted the Reliance proposal, hours before a state government deadline to Maytas to achieve a financial closure for the project.

A consortium led by Maytas Infra — a company promoted by the kin of Satyam Computer founder B. Ramalinga Raju, who is now in jail — had won the bid to build the Rs 12,000-crore metro rail project, but doubts arose as to its ability to complete the project in the wake of the Satyam scam.

K. Ramalingam had suggested two other partners for the project to Reddy — Malaysia’s Magna Allmore, an investment firm, and Germany’s Siemens. However, Reddy rejected both the names.

The Andhra chief minister is yet to take a call on Reliance Infra.

However, Ramalingam is optimistic about Maytas joining hands with the Anil firm to complete the project on schedule by 2014.

Sources close to Reddy said Ramalingam sought one more month to finalise the deal with Reliance and come back with a financial package.

The chief minister is understood to have sought a letter from Reliance Infra on its game plan.

A spokesperson for Reliance Infra refused to comment.

However, sources within the company said talks with Maytas Infra had picked up pace over the last few days...

[zenith_suv]

84% stake , that's not joining hands - it's plain pushing Maytas to the background which btw I'm all for.

[skdubai]

thats what i meant as well... the alternative dun sound too promising!!! newhoo.. i wish ysr would take his head out of his ass and decide one way or the other... Atleast get things moving!!!!

[ferrari_fan]

Originally Posted by Vara123

YSR, Wakeup and see the traffic problems in Hyderabad. Give the Metro Project to the next highest bidder. r.

Was that pic taken during the airshow at the old Begumpet airport, by any chance?

[p.raghavendra6]

Hyd doesn't need any special occasions for that type of traffic jams to happen.
It is a daily thing.

[Kewl Batty]

Originally Posted by p.raghavendra6

Hyd doesn't need any special occasions for that type of traffic jams to happen.
It is a daily thing.

Yea. And one more thing that contributes to traffic is the attitude of the people on the road.
Forget lane discipline, they dont even consider the "red light" as stop signal .. poor traffic cops

But few of the roads are really wide enough and nice

[Babji]

Officials push for Maytas
By By Our Correspondent Jul 06 2009 Hyderabad

July 5: The Chief Minister, Dr Y.S. Rajasekhar Reddy, is likely to take a decision on the Metro Rail on Monday even as he came under pressure from a lobby of officials to retain Maytas Infra, which is in trouble following the scam at Satyam, as the project’s builder.

If the government cancels the deal, it will have to build the project on its own with Central assistance. The second highest bidder, the Magna Almore-led consortium, has conveyed its disinterest in the project. Maytas’ efforts to rope the Reliance scion, Mr Anil Ambani, into the project too did not materialise.

The lobby of officials pushing the case of Maytas Infra is hyping the fact that its bankers have decided to restructure the debt repayment and provide Rs 100 crore working capital to the company. The lobby is also projecting a willingness letter that Maytas has obtained from the Singapore-based Concept to Commissioning Consultant to participate in the project as an incentive.

A senior official pointed out: “Maytas has to produce performance guarantee of Rs 240 crore for which it has to shell 10 per cent. It has to convince banks to stand guarantee for the remaining 90 per cent.” “It may be prudent for company to mobilise Rs 24 crore and pay the bank than lose Rs 70 crore to the government by preferring cancellation of the project,” he said.

Market circles rule out the possibility of banks standing guarantee to Maytas for such a huge amount. “As it is the market is badly hit by the slowdown. Particularly after the Satyam fiasco, no bank will agree to stand guarantee even for 10 per cent of the amount leave, about 90 per cent,” said the senior vice president of a leading IT space provider. On the other hand, the government is coming under increasing pressure from the Centre, though indirectly, to cancel the deal with Maytas Infra.

The Union urban development minister, Mr S. Jaipal Reddy, has repeatedly announced the Centre’s readiness to fund the project. The Union minister has agreed to bear the state’s component also if the project is put up for Central funding in addition to the already agreed-upon Viability Gap Funding of Rs 4,000 crore.

Source URL: http://www.deccanchronicle.com/hyder...ush-maytas-034